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US businesses expanded in December for the fifteenth consecutive month and at the fastest pace in two decades, confirming that the economic recovery is accelerating ahead of the New Year. New weekly jobless benefit claims dipped by 34,000.

The Central Bank reported today that lending to Irish households and businesses fell again in November. European Central Bank (ECB) lending to banks rose by €11.7bn in November, bringing the total borrowed to €97.3bn.

China’s manufacturing activity fell to a three-month low in December but rising raw material costs raised inflationary pressures according to a report on Thursday. Meanwhile Japanese manufacturing activity contracted for a fourth straight month in December but the rate of deterioration was the slowest in three months.

Innovation: Ireland’s faith-based ‘smart economy’ strategy was reaffirmed this week as the Government’s hoped for engine of growth despite the evidence that it isn’t working. Apart from the wanton waste of public funds at a time of austerity, there is the important issue of universities as vested interests seeking public funds from amateur politicians and the inherent risks of academics in the dual roles of tenured professors and for-profit scientists in pursuit of what could be termed free-lunch entrepreneurship.

The gap between between improving ‘traded’ sectors gaining from a recovery in exports and weakening Irish domestic demand is increasing, according to the Winter 2010 KBC Bank / Chartered Accountants Ireland Business Sentiment Survey.

Data through October 2010, released Tuesday by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, show that home prices in 20 large US cities fell in October. Detroit home prices are more than 30% below their January 2000 values.

The Conference Board US Consumer Confidence Index, which had improved in November, decreased slightly in December. The Index now stands at 52.5 (1985=100), down from 54.3 in November. The Present Situation Index declined to 23.5 from 25.4. The Expectations Index decreased to 71.9 from 73.6 last month.